We have witnessed many changes in the real estate market since the crash back in 2008. Real estate in the United States has been skyrocketing regarding the number of homes being built, the price of homes, and city growth population. You may be wondering how much it has increased in each area and the impact of homeowners in each region experiencing growth. Certain areas are getting hit harder than others. No matter where you live in the United States, you have witnessed some rise in average home prices. In Philadelphia, we have also noticed an increase in large apartment complexes growing. These buildings contain fifty or more units being built three to six stories high in most cases, leaving Philadelphia completely confused, not sure where to turn with all this development. With so many pros and cons of the growth of the real estate market, we decided to fill our readers in about the Jurassic changes we have noticed since the real estate market has returned vigorously.
Huge market shift
After the real estate crash in 2008, the United States had noticed an extreme drop in the price of homes. At this time, the average home price across America was around $180,000. Currently, in today’s market, the average home cost is $389,000. That is a 216 percent increase in the cost of homes. With such a significant spike in prices, you may wonder why people continue to buy houses at an alarming rate. The reason being is that there is so much inventory due to being a sellers’ market. The entire nation is cashing out on the long-lived home they may have purchased back in the early 2000s. Homeowners currently are not struggling with the ability to sell my house fast Philadelphia because there are plenty of buyers coming in from different states. The average home in Philadelphia, listed with a real estate agent, sells shorter than 30 days of being on the market. The short amount of time it takes homes to sell is a prominent trend across the city and in the United States. If the market is so red hot, you may be wondering is it an enjoyable time to buy a home. Depending on what your purpose of purchasing the house is. Suppose you plan to fix it up and re-sell it for profit, then probably not the best time, depending on the purchase price. If you are looking to buy it just for rental purposes, it may not be your time for that either. Now, if you may be looking to live in the home as a primary residence, you may be in luck with the mortgage rates being as low as they are making for a suitable time to buy. In most cases, we have found that owning can be cheaper than renting if you are not constantly battling issues in the home. At the start of the Pandemic, homeowners were found to get interest rates as low as two percent and some lower, making being a homeowner very appealing.
Take a ride down about any city block; you will see We Buy Houses Philadelphia signs tied to every tree in the city. With a phone number attached to it stating you can sell your home fast for cash! If you have noticed, the entire town has houses built from north to south. Developers and house flippers have shown their presents in Philadelphia. The city had plenty of room for people to build homes and ample empty commercial space to build apartment complexes/ condominiums. House flippers are taking advantage of their being vacant homes in Philadelphia. They are buying them at lower prices from the homeowners and will go in and gut the existing house and build it up brand new. It allows them to turn a small profit when completely renovating the home. A similar thing that the builders have been doing in the same instance. They purchase empty lots from the city or private owners and build these sizeable new construction homes crammed in between other rowhomes. People are paying good money for these large new construction homes in the city. About every block in Philadelphia has seen its fair share of new construction homes popping up in their neighborhood. As a property owner in the town, it can be frustrating watching this building going on, but it is raising the value of most homes; this is helping fuel the colossal spike in home prices in the city and nationwide.
Taxes Are Becoming a Problem
Taxes are becoming a severe problem for plenty of homeowners. Yes, the real estate boom has been beneficial to most. However, many people are still negatively affected by this rise in real estate prices. We have mentioned a lot about Philadelphia but have not discussed much New Jersey, a state just across the bridge from Philadelphia, even though they have seen increased home prices. Their taxes have increased at a staggering rate. Most New Jersey is paying several thousand in taxes on their property a year. You can imagine this may make a homeowner say I want to sell my house fast New Jersey and get out why I still can, and this can be the case for some New Jersey residents, but what if you do not want to leave your home. Most residents, just like Philadelphia, have lived here their entire lives, and to pick up and leave due to extremely high taxes is not correct; this can be especially hard on the elderly who live off a fixed income. If taxes continue to rise and house prices, this could cause a very messy situation. We do not expect a market crash like 2008 to happen any time soon because we feel we have learned from our past mistakes. However, if this market does not slow down anytime soon, it can cause a profoundly fundamental problem for many property owners across the country.